What monthly contribution can reach a target balance by a chosen date?

A savings-goal calculation solves for the repeated contribution needed after allowing the existing balance to grow. Time and return assumptions change how much of the target must come from deposits.

Solving backwards from a target balance

Current savings are first grown at the entered annual return for the full period. That future amount is subtracted from the target to determine the shortfall.

The monthly contribution is the fixed end-of-period amount required to cover that shortfall under monthly compounding. Returns are assumed constant and tax, fees and inflation are excluded.

Existing savings growth plus an annuity of deposits

i = Annual return ÷ 100 ÷ 12n = Years × 12Existing savings grow to = Already saved × (1 + i)ⁿShortfall = Goal − Existing savings grownMonthly = Shortfall × i ÷ [(1 + i)ⁿ − 1]

Funding one target by a fixed deadline

The default projection starts with the amount already saved, compounds it at the entered rate and calculates the monthly contribution required to close the remaining target gap.

Save each month$456.00
Gap to cover$30,232.03
Current savings will grow to$9,767.97
Total you contribute$27,359.72

How time changes the monthly requirement

A longer term usually lowers the required monthly amount because there are more deposits and more time for growth. A higher target or lower starting balance raises it.

Testing the target against lower returns

A projected return is not guaranteed. For a fixed deadline, test a lower-rate scenario rather than relying on one optimistic input.

  • The annual return stays constant and compounds as displayed.
  • Contributions occur monthly at the formula’s assumed timing.
  • Tax, fees, skipped deposits and withdrawals are excluded.

Calculations related to savings goal

The following tools examine neighbouring parts of the same calculation without changing the inputs or assumptions used above.

Quick answers

Frequently asked questions

Does the calculator grow my existing savings?

Yes. Existing savings are compounded monthly at the entered annual return over the full term.

When are monthly savings assumed to be deposited?

The annuity formula treats them as regular end-of-period monthly contributions.

What happens if current savings already grow beyond the goal?

The remaining shortfall is zero or negative, so no positive monthly contribution is required under the entered assumptions.

Educational content only. This guide is not financial advice.